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The IRS Taxpayer Advocate Service (TAS) has unveiled ambitious reforms for 2025 to strengthen taxpayer rights, modernize the IRS system, and reduce delays in resolving critical tax issues. In a mid-year report to Congress, National Taxpayer Advocate Erin M. Collins outlined sweeping initiatives, including fully functional online accounts, faster resolution of identity theft cases, and digitization of paper returns to improve services for the general public.
In her mid-year report to Congress, National Taxpayer Advocate Erin M. Collins said 2025 will be pivotal for modernizing the Internal Revenue Service and improving taxpayer confidence. She noted that while the filing season was one of the most efficient in recent memory, taxpayers still face delays, limited online tools, and outdated systems or procedures that complicate routine interactions.
The reform package prioritizes three areas. First, the Taxpayer Advocate Service will expand fully functional digital accounts so taxpayers can file returns, view notices, upload documents, and respond online. Second, the agency will cut the average time to resolve identity theft cases from nearly two years to four months, easing burdens for those facing financial hardship. Third, digitization tools will replace manual data entry, reducing backlogs from millions of paper returns. Collins said these initiatives are essential for the taxpayer advocate mission to assist the general public when the IRS system fails to provide timely solutions.
Despite the promise of sweeping reforms, the Internal Revenue Service (IRS) faces steep hurdles in carrying them out. Between the start of the 2025 filing season and June, the agency’s workforce shrank by 26 percent, falling below 76,000 employees. Critical divisions—including information technology and taxpayer services—lost thousands of staff, leaving fewer specialists to implement new digital tools and provide direct assistance.
The IRS system or procedure currently relies on more than 60 distinct case management platforms that rarely communicate with one another. This fragmentation forces customer service representatives to juggle multiple programs, often keeping taxpayers on hold or requiring department transfers. Such inefficiencies highlight why modernization is urgent and remains difficult with reduced staffing.
Funding from the Inflation Reduction Act is meant to sustain long-term improvements. Yet, Collins cautioned that taxpayers could struggle to resolve routine tax issues quickly without aggressive hiring and training. For now, the agency must balance the pressure of technological upgrades with the realities of a shrinking workforce, raising concerns about how well the IRS system will deliver on the promises outlined in the 2025 reform plan.
A central reform announced by the IRS Taxpayer Advocate Service is the creation of comprehensive online accounts, intended to function as a one-stop portal for all IRS interactions. Only about 10 percent of taxpayers currently use online accounts, largely because their capabilities are limited. Under the 2025 initiative, individuals can file returns, view notices, upload documents, and receive responses digitally—mirroring the convenience of modern banking platforms. Collins noted that expanding online services would give the general public a more efficient way to visit the IRS without relying on phone calls or physical offices.
Beyond the reforms, the taxpayer advocate service continues to play a unique role within the federal tax system. TAS reports directly to Congress as an independent body, bypassing the Treasury Department or IRS leadership. This independence ensures taxpayers have a voice when standard IRS systems or procedures fail to deliver timely solutions.
Since 2011, TAS has assisted more than two million taxpayers, helping them navigate issues ranging from refund delays to identity theft. Many of these cases involve individuals experiencing financial hardship, for whom waiting months or years for refunds can be devastating. TAS caseworkers and trained volunteers work across every state to ensure that taxpayer concerns are heard and resolved.
The agency also identifies broader systemic problems and makes policy recommendations to strengthen taxpayer rights and improve government services. For members of the general public, TAS remains the frontline advocate for hearing about and addressing the kinds of tax issues that most directly affect household finances.
In her report, National Taxpayer Advocate Erin M. Collins praised the 2025 filing season but warned that next year could present new risks without immediate preparation. “With the IRS workforce reduced by more than a quarter and major legislative changes on the horizon, the agency must act now to prepare for the challenges ahead,” she said.
Collins also underscored that identity theft victims cannot afford to wait nearly two years for cases to be resolved. “These delays create significant strain, particularly for taxpayers facing financial hardship who rely on refunds to pay essential expenses,” she added.
The Government Accountability Office echoed those concerns in a recent note, acknowledging progress but stressing that the IRS must improve its tracking of reforms across its fragmented systems or procedures.
IRS officials, meanwhile, said they remain committed to modernization and expanding taxpayer services. They emphasized that funding under the Inflation Reduction Act is being directed to long-term improvements, even as the agency manages immediate staffing shortages.
For many Americans, the reforms are not just about efficiency—they are about financial survival. Taxpayers experiencing financial hardship often depend on timely refunds to cover rent, groceries, or medical expenses. Lengthy waits caused by backlogs in the IRS system and outdated systems or procedures have left some unable to manage basic needs.
The Taxpayer Advocate Service is positioning these initiatives as a direct benefit to the general public. By cutting case resolution times, expanding online options, and digitizing paper returns, TAS aims to ensure that everyday tax issues are resolved quickly.
Taxpayers seeking assistance can still visit a local TAS office, use the agency’s website, or rely on the correct mailing address for correspondence. These points of contact remain vital for those who need an advocate to assist them when normal IRS channels fall short.
The coming year will test whether these reforms can deliver lasting improvements. The most important date for taxpayers is the 2026 filing season, when expanded online accounts and new processing systems are expected to roll out in phases. The IRS Taxpayer Advocate has urged the agency to begin staffing and training now to avoid disruptions.
In addition, TAS will provide quarterly updates on progress, ensuring that the general public can track implementation of new services. Officials said these transparency measures are designed to build confidence that long-standing challenges within the IRS system are being addressed in a sustainable way.
Taxpayers who need direct assistance can visit the Taxpayer Advocate Service website or reach a local TAS office for help with a tax issue. The agency provides free support to individuals across every state and serves as an independent voice for the general public. Official updates are available through the IRS Newsroom and Taxpayer Advocate Service.
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